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t+3/ daytrading info and experiences
Deltalady
post Posted: Jul 29 2005, 08:54 AM
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FYI: the bank holiday next monday (1 aug) gives T+ traders an extra day of "credit"

cheers tongue.gif



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Warning: my views and opinions have no relevance whatsoever to real life or persons....just ask my teenage son !
 
znay
post Posted: Mar 22 2005, 09:08 PM
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In reply to: harpeau on Tuesday 22/03/05 06:31pm

Hi Harpeau

I think the debit takes place at 11:00 am on T+3. However, if you sell at 10:30 on the T+3 day, you won't be debited. That's what I can the T+3 facility. In comparison, the comsec one is a trap: buy at day one, and sell at day 3 or 2 you will get the 3 x $35.00 fee. I have learnt it the hard way.



 
harpeau
post Posted: Mar 22 2005, 06:31 PM
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In reply to: znay on Tuesday 22/03/05 05:22pm

Hi Znay

the easystreet T+3 facility will make arrangement to debit your account at end of T+2, so if funds are not there on T+3, you may get slugged for a dishonor fee.




 
znay
post Posted: Mar 22 2005, 05:22 PM
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In reply to: happy2 on Tuesday 22/03/05 04:57pm

Happy2

Actually the $26 fee allows one to trade upto $500 k. Only trouble is you have to call them to place the order. They said they are looking to increase the internet placed order limit to more than 50 k, but apparently have not done that yet.

Happy trading.

 
happy2
post Posted: Mar 22 2005, 04:57 PM
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In reply to: znay on Tuesday 22/03/05 04:33pm

Znay,

Had a look at the easystreet trading. Nice and cheap. Only $26, as you say, for any internet trade up to $50k. Even the over the phone trades are cheap for larger trades. Save a lot in commission.

The credit facility is only up to $25k on the top 150, which is a bit of problem if you see a sweet trade outside of that 150. Have to send in funds and do a lot of mucking around, the day beforehand. The problem is that many T3 trades only present themselves suddenly and if you don't catch them on the run up, there is no profit to be made.












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Have a good one

Happy 2





"Knowledge is a process of piling up facts; wisdom lies in their simplification".

Caveat Emptor: the above comments are merely opinion, not advice.
 
znay
post Posted: Mar 22 2005, 03:33 PM
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In reply to: drarthur on Monday 21/03/05 09:06pm

I had the worst experience with comsec in T + 3 trading. I once bought a stock and sold on the third day only to be charged 3 x $35. The explanation was that if you buy and sell on the same day, then it is ok. Otherwise, you have to have the cleard funds for the settlement when due. When you buy the settlement is 3 days and when you sell the settlement is 5 days. For each of those days my sell was not settled, I was charged the dishonorable cheque fees of $35.00.

Had enough of them and moved all of my holdings out my consec account. I am now using easy street broking. They charge a flat fee of $26 per transaction and credit you immediately after sell. Hence you can buy at day one and sell at day four without the need of own fund, a true T + 3 trading.



 


fumod
post Posted: Mar 22 2005, 01:13 PM
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Buy tomorrow on 23/03/05 settle on 30/03/5. 7 days free credit with the easter break.
or today 22/03/5 settle on 29/03/05. still ony three trading days.

 
bailej03
post Posted: Mar 21 2005, 09:26 PM
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Thanks guys for your replies... good to see we can get both sides of the story without any criticism.

I don't think I'll be day trading any time soon, but may read a few books about it in the meantime.

Cheers



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--[b]Nothing is certain in life nor the market[/b]--

Everything is worth what someone else is willing to pay for it
- Archibald Hutcheson, 1720
 
drarthur
post Posted: Mar 21 2005, 09:06 PM
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I have used T3 very frequently in the past, I find as I'm getting older (37) and work continues to consume more and more of my time I'm holding my stocks and using T+3 less and less. When i was day trading it was a very profitable excercise for me, however when i analysed my trading patterns whoch i do every 6 months I found that if I had held most of the stocks my profits would have been even larger, I found that with day trading I never took full advantage of a trending stock.

I still use T+3 for some speccie trades but not so frequently though, however with my full service broker I often get a bit of leeway to T+3 which sometimes ends up as T +10.

Comsec as stated earlier does not allow T3 trading, and if you don't have the funds at term you get slugged a penalty.

Day trading seems like a good way to make $$$ fast, but you are better off buying 4 or 5 good stocks, going out for lunch or to the pub for a beer and place your stops and go with the trend.



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"The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee."
 
happy2
post Posted: Mar 21 2005, 05:00 PM
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Many new players are tempted to utilize the T+3 free credit. Works well if you predict a move and catch it. Just the same as intra-day trading really. You buy in to sell the same day or maybe in the next 2 days.

If you have to sell at a loss, well then that is too bad. This is par for the course.

Got caught last year on 500k OXR, cost me 5k. Expected them to rise, but they didn't even move a cent in the 3 days. If OXR moved in the right direction then I would have picked a sweet return.

People claim that T+3 free credit does not exist. In fact, many ignorants like to state this. I suppose it depends which broker is used. I have accounts with 4 brokers. Only use one for credit. This is primarily because they take money straight out of my cheque account. The other brokers all have cash management accounts which they debit and credit as soon as the transaction takes place.

T+3 can be a neat way of making a few bob on the side, but it needs to be treated as speculative.

However, there is another way in which T+3 is beneficial. Say you are in the process of transferring out of a stock and it is a bit illiquid, or you are having a little bit of difficulty obtaining your price all at once, T3 can be an advantage. This is because you can buy into the other stock ahead of your selling. This has been helpful to me on various occassions.

Like many players in the market, I can be in and out of the same stock or different stocks in a day. At the same time, I am also playing with different accounts for various reasons. Each account has its advantages.

One way I use T+3 is by buying and selling a stock I may have a holding in. For instance, say I was holding 10K BHP and I thought that it might move up on a dip, I will buy another 10K to sell on its upward rise. Consequently, it can cost you if you get it wrong, and often you might find yourself paying out commission for the sake of the play. Works better on microcaps, because commission on the higher priced stocks can knock your profits around.

Whichever way you look at it, T+3 is really a form of intraday trading, even if it takes 3 days. Once you have perfected the application of this resource, it can only increase your earnings. Mind you, it can provide some costly lessons.

My last t+3 trade was with HDR on Friday. Bought in at 2.04, had to get out today at 2.01 for a 3k loss. I thought I might be able to sell at 2.09. The holding I bought at 1.95 turned a profit. But not as much as I would have liked.

In a nutshell, trading T+3 is basically close to gambling. Adds a bit of spice to the day, if nothing else.



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Have a good one

Happy 2





"Knowledge is a process of piling up facts; wisdom lies in their simplification".

Caveat Emptor: the above comments are merely opinion, not advice.
 
 


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